Summit Ascent Holdings has said that the construction of its casino resort in the Integrated Entertainment Zone of the Primorye Region, near Vladivostok, is ‘nearing completion.’
The opening of the casino resort, which will have 119 hotel rooms, 800 slot machines, 25 VIP gaming tables, 15 mass-market baccarat tables and 25 mass-market tables, has been delayed until July.
The project is backed by Melco International Development, led by Lawrence Ho, who is a minority investor having ploughed in US$700m.
Mr. Ho said: “The challenges experienced [in the Macau market] presented us with opportunities and we remain optimistic about the prospects of the company’s gaming and resort development in the Russian Federation Far East, which has so far attracted more international investment than the country’s other gaming zones. Sino-Russia political relations have continued to improve, and the two countries have grown increasingly economically interdependent.”
Summit Ascent said: [The project] carries a very favourable tax environment for gaming activity compared to other jurisdictions, and is expected to be the first and only legitimate casino operating in the Far Eastern region of the Russian Federation for next few years. For these reasons, the group remains optimistic and moreover sought to acquire an additional 14 percent equity interest in the project in 2014.”
The casino falls within a three-hour flight radius of Summit’s ‘target feeder markets’ of Heilongjiang, Jilin and Liaoning provinces in northeastern China, as well as South Korea and Japan.